Case type 16
Declining industry and turnaround
The business is shrinking: separate the company from the industry, fix what is fixable, and, when the whole industry is declining, manage the decline for cash.
20 min1 lesson Last reviewed
Start the lesson Declining industry and turnaround
How do you approach a declining industry or turnaround case?
- Separate the company's decline from the industry's, fix what the company controls, and be ready to recommend managing a decline for cash when that is the best answer.
- The most common mistake: assuming every decline can be reversed.
- First decide whether this is a company problem or an industry problem, because the realistic answer differs completely, and do not promise growth in an industry that cannot support it.
By the end you will be able to
- Separate company decline from industry decline
- Find a credible turnaround path
- Model a declining business and know when to harvest or exit
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Common questions: Declining industry and turnaround
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